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Performance-Based Conditionality: A European Perspective

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  • Adam, Christopher
  • Chambas, Gerard
  • Guillaumont, Patrick
  • Guillaumont Jeanneney, Sylviane
  • Gunning, Jan Willem

Abstract

For several years, the conditionality underpinning budgetary support to developing countries has been the object of severe criticism. This criticism has led to the belief that the “ownership of policies” by the recipient country governments is essential for the effective implementation of economic reform programmes. To this end, it has been suggested that traditional conditionality based on policy measures be replaced by a conditionality in which aid is based on performance outcomes. In this spirit, the European Commission has reformed its adjustment aid. The present article provides an assessment of this experiment based on the experiences in Benin, Burkina Faso, Madagascar and Uganda. It demonstrates the danger of a shift towards intermediate indicators, which are too distant from the final impact of the policies, and suggests several improvements to implement genuine performance-based conditionality.
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Suggested Citation

  • Adam, Christopher & Chambas, Gerard & Guillaumont, Patrick & Guillaumont Jeanneney, Sylviane & Gunning, Jan Willem, 2004. "Performance-Based Conditionality: A European Perspective," World Development, Elsevier, vol. 32(6), pages 1059-1070, June.
  • Handle: RePEc:eee:wdevel:v:32:y:2004:i:6:p:1059-1070
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    References listed on IDEAS

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    1. Boris Pleskovic & Joseph E. Stiglitz, 2000. "Annual World Bank Conference on Development Economics 1999," World Bank Publications, The World Bank, number 13839.
    2. P. Guillaumont & L. Chauvet, 2001. "Aid and Performance: A Reassessment," Journal of Development Studies, Taylor & Francis Journals, vol. 37(6), pages 66-92.
    3. Collier, Paul & Gunning, Jan Willem, 1999. "The IMF's Role in Structural Adjustment," Economic Journal, Royal Economic Society, vol. 109(459), pages 634-651, November.
    4. C. S. Adam & S. A. O'Connell, 1999. "Aid, Taxation and Development in Sub-Saharan Africa," Economics and Politics, Wiley Blackwell, vol. 11(3), pages 225-253, November.
    5. Adam, Christopher S. & Gunning, Jan Willem, 2002. "Redesigning the Aid Contract: Donors' Use of Performance Indicators in Uganda," World Development, Elsevier, vol. 30(12), pages 2045-2056, December.
    6. Michael Mussa & Miguel Savastano, 2000. "The IMF Approach to Economic Stabilization," NBER Chapters,in: NBER Macroeconomics Annual 1999, Volume 14, pages 79-128 National Bureau of Economic Research, Inc.
    7. Collier, Paul & Gunning, Jan Willem, 1999. "The IMF's Role in Structural Adjustment," Economic Journal, Royal Economic Society, vol. 109(459), pages F634-51, November.
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    Cited by:

    1. Patrick Guillaumont & Laurent Wagner, 2014. "Aid Effectiveness for Poverty Reduction: Lessons from Cross‑country Analyses, with a Special Focus on Vulnerable Countries," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 217-261.
    2. Patrick GUILLAUMONT, 2009. "Aid effectiveness for poverty reduction: macroeconomic overview and emerging issues," Working Papers P05, FERDI.
    3. Sylviane GUILLAUMONT JEANNENEY & Patrick GUILLAUMONT, 2006. "Big Push versus Absorptive Capacity: How to Reconcile the Two Approaches," Working Papers 200614, CERDI.
    4. Tarp, Finn, 2006. "Aid and Development," MPRA Paper 13171, University Library of Munich, Germany.
    5. Sylviane GUILLAUMONT JEANNENEY, 2008. "Les fondements éthiques de l’aide publique au développement : une application à la France," Working Papers 200809, CERDI.
    6. Koch, Svea, 2015. "A Typology of Political Conditionality Beyond Aid: Conceptual Horizons Based on Lessons from the European Union," World Development, Elsevier, vol. 75(C), pages 97-108.
    7. Pablo Yanguas, 2014. "Leader, Protester, Enabler, Spoiler: Aid Strategies and Donor Politics in Institutional Assistance," Development Policy Review, Overseas Development Institute, vol. 32(3), pages 299-312, May.
    8. Gaoussou Diarra, 2011. "Aid unpredictability and absorptive capacity: analyzing disbursement delays in Africa," Economics Bulletin, AccessEcon, vol. 31(1), pages 1004-1017.
    9. Holvoet, N. & Renard, Robrecht, 2007. "Monitoring and evaluation under the PRSP: Solid rock or quicksand?," Evaluation and Program Planning, Elsevier, vol. 30(1), pages 66-81, February.
    10. Ravi Kanbur, 2005. "Réformer la formule : une modeste proposition pour inclure des critères de résultats dans les procédures d'allocation de l'aide de l'IDA," Revue d’économie du développement, De Boeck Université, vol. 13(2), pages 79-108.
    11. Kanbur, Ravi, 2005. "Reforming the Formula: A Modest Proposal for Introducing Development Outcomes in IDA Allocation Procedures," CEPR Discussion Papers 4971, C.E.P.R. Discussion Papers.
    12. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, Elsevier.
    13. Quibria, M.G. & Islam, Anika, 2014. "Aid Effectiveness in Bangladesh: Development with Governance Challenges," MPRA Paper 63759, University Library of Munich, Germany.
    14. Oliveira Cruz, Valeria & McPake, Barbara, 2010. "The "aid contract" and its compensation scheme: A case study of the performance of the Ugandan health sector," Social Science & Medicine, Elsevier, vol. 71(7), pages 1357-1365, October.
    15. Quibria, M.G & Ahmad, Shafi, 2007. "Aid Effectiveness in Bangladesh," MPRA Paper 10299, University Library of Munich, Germany, revised Sep 2008.
    16. Jan Willem Gunning, 2005. "Pourquoi donner de l'aide ?," Revue d’économie du développement, De Boeck Université, vol. 13(2), pages 7-50.
    17. Fisher, Jonathan, 2015. "‘Does it Work?’ – Work for Whom? Britain and Political Conditionality since the Cold War," World Development, Elsevier, vol. 75(C), pages 13-25.

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